Olympus buys Israeli co Medi-Tate for $300m

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Medi-Tate, which develops minimally-invasive treatments for the lower urinary tract, will become the Japanese medical device company's Israel R&D center.

Japanese medical device company Olympus Corp. has announced that it is exercising its call option to fully acquire Israeli medical device company Medi-Tate at a company valuation of $300 million, in an all-cash deal. 

Medi-Tate, which was founded in 2017 by CEO Ido Kilemnik, develops treatments for conditions in the lower urinary tract. The company has raised $37 million to date, so that an acquisition by Olympus at a company valuation of $300 million represents a profitable exit for its shareholders, which include Olympus itself. Medi-Tate has 12 employees including 11 at its development center in Hadera in Israel and one in London. Following the acquisition, Medi-Tate will become Olympus's R&D Center in Israel.

Olympus is traded on the Tokyo Stock Exchange, at a market cap of $27 billion.

Cooperation between Olympus and Medi-Tate began in 2018, when Olympus received the rights to distribute Medi-Tate's products, as part of an investment, in which it acquired a 16.7% stake, fully diluted, of Medi-Tate's equity. The Japanese company is now buying the remaining 83.3% stake for about $250 million.

Medi-Tate's flagship product is called iTind, a device to treat benign prostate hyperplasia (enlargement) (BPH), which is a very common problem in men aged above 50. iTind, which is FDA cleared in the US and has the EU CE mark, is a minimally invasive device designed for patients leading an active lifestyle and not wanting a surgical procedure, which includes prolonged anesthesia, hospitalization for several days and insertion of a catheter. iTind is completely removed after 5-7 days, after which the patient should stop suffering from the side effects of the benign growth.

BPH is one of the most frequent problems inflicting men over 50 (almost 50% suffer from this) and is the most common reason for various problems and lower urinary tract symptoms (LUTS). According to the American Urological Association, in the US alone more than 115 million men suffer from BPH, and the cost of treating the problem is estimated at $10 billion per year and represents a heavy burden on the US health system. According to the American Urological Association, at least 80% of men will be impacted by the illness before the age of 80.

Medi-Tate was represented in the deal by Adv. Atir Jaffe, a Senior Partner at the Pearl Cohen law firm.

Medi-Tate CEO and founder Ido Kilmnik said, "We are delighted to join Olympus Corp., which shares a joint vision to make iTind the standard treatment for benign prostate hyperplasia (BPH) worldwide. The announcement today is recognition of our focus on long term clinical results and the hard and dedicated work of all the Medi-Tate team. We are excited to cooperate with Olympus in order to continue to improve the quality of life of those treated."

Medi-Tate VP business development & marketing Vanessa Malka added, "As the current market leader in the field of BHP surgery, Olympus is the ideal platform to help move iTind forward and to ensure that many more men will have access to the possibility of this important treatment."

Olympus Corp COO Nacho Abia said, "The investment in Medi-Tate has expanded our patient care offerings in BPH, adding to Olympus’ market-leading plasma resection portfolio for transurethral resection of the prostate (TURP). Our partnership with Medi-Tate has supported one of Olympus’ key strategic initiatives to drive growth in our urology business and to expand our minimally invasive surgical solutions, enabling further improvement of clinical outcomes, reduction of overall costs and enhancement of patients’ quality of life and safety."

Published by Globes, Israel business news - en.globes.co.il - on February 27, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

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